From Yahoo Finance: 2025-03-27 02:03:00

President Donald Trump’s new tariffs on imported cars caused global automaker shares to plummet. The 25% import tax on non-U.S. vehicles beginning April 3 hit U.S. giants General Motors and Ford. European car makers like Volkswagen saw drops, while Japan’s Toyota, Honda, and Nissan also suffered. South Korea’s Hyundai and Kia saw losses too.

Volkswagen and Stellantis, among top U.S. vehicle producers in Mexico, face challenges. Germany’s car industry association condemned the tariffs as a “fatal signal” for global trade. U.S.-EU talks are urged to find solutions. The U.S. set an April 2 deadline for broader tariff policy announcements, signaling uncertainty in markets over lasting trade changes.

Goldman Sachs analysts noted half of U.S. car sales are imported, totaling $330 billion last year. New tariffs may add thousands to vehicle costs and disrupt production due to intertwined manufacturing operations. Wedbush analysts warn of a “hurricane-like headwind” for automakers, with car prices potentially increasing $5,000 to $10,000.

Tesla’s premarket trading saw marginal losses amid punitive tariffs on Chinese electric vehicles. Investors await further details on upcoming tariffs from Trump. Market analysts express concern over extended trade uncertainty and potential global trade order changes. Trump’s actions may have long-lasting effects on the automotive industry and global trade.



Read more at Yahoo Finance: Auto stocks slide as US tariffs send ‘fatal signal’ for trade